The two companies, alongside the East China Engineering Science and Technology Co. (ECEC), have also committed to work on future project opportunities together.
China’s latest Five-Year Plan (2026 - 2030) aims to accelerate the country’s ‘green transition’ with the production of advanced green fuels – like methanol, ammonia and sustainable aviation fuel – identified as strategic, high-growth industries. The country is rapidly growing its methanol production and green fuel capacity, reducing dependence on imported oil and gas. China is quickly establishing itself as a global leader in low-carbon shipping fuel and chemicals.
The Guangxi plant will demonstrate new technologies and innovation in gasification and the integration of renewable power systems. Johnson Matthey provides the methanol technology which converts gasified biomass waste into biomethanol.
When complete, the first phase – with construction expected to begin later in 2026 – will achieve an annual production capacity of 75 000 t of biomethanol.
If approved, a second phase will see an additional plant use the excess carbon dioxide from the first plant. It will be combined with electrolytic hydrogen to produce e-methanol which can be used to help meet e-fuel mandates, including those in Europe. This will increase the capacity for low carbon methanol production at the site without the need to use additional biomass feedstock.
JM’s methanol technology converts syngas from different feedstock sources, including waste biomass, into methanol. Already proven at scale, JM's technology delivers enhanced long-term operational performance by combining its proprietary methanol synthesis loop with a high-performance catalyst.
Alberto Giovanzana, CEO of Catalyst Technologies, Johnson Matthey, said: “Johnson Matthey has worked in China for more than 30 years with the country’s largest, most successful energy and chemical producers. We’re excited to be a part of Liquid Sunshine’s plans and this project represents our second green methanol plant license win in China. Our methanol synthesis technology will play an increasingly vital role as the site eventually integrates biomethanol with e-methanol production. Once operational, this refinery will help meet the growing demand for fuel and energy security in the marine industry.”
Xi Jiang, Executive President of Liquid Sunshine, added: “The renewable energy and chemical industries are entering a critical phase of accelerated growth here in China. We are delighted to have JM’s technical expertise on board, as we develop a biomethanol plant. For us, this collaboration marks an important starting point for deeper partnerships with global technology leaders, such as JM, enabling both parties to actively explore domestic and international green energy markets and foster innovation.”
The project will be led by Guangdong Liquid Sunshine, jointly constructed with the Tiandong County People's Government and China Coal Guangxi New Energy, while ECEC will also act as a key project partner in engineering.
Johnson Matthey, Liquid Sunshine, and ECEC have also signed a memorandum of understanding (MoU) to collaborate on future projects together. By leveraging the combined strengths and resources of all three parties, the collaboration aims to establish a strategic partnership that advances decarbonisation technologies in China.